Bill Gross Sells Low-Yielding MLP and Recommends Top High-Yield Dividend Stocks
Bill Gross: The 'Bond King'
Overview
Bill Gross, an investment expert who amassed a $1.7 billion fortune, has been shifting his attention to master limited partnerships (MLPs) for higher dividends. Despite the solid record of Enterprise Products Partners, Gross is selling his stake to focus on Western Midstream, Energy Transfer, and MPLX.
Individual MLP Analysis
- Enterprise Products Partners: Highly diversified but offers a lower yield.
- Western Midstream: Gross' favorite, providing the highest yield.
- Energy Transfer and MPLX: Offer higher yields and upside potential due to lower valuations.
Financial Profile and Strategies
All four MLPs present strong financial profiles, low leverage ratios, and excess free cash flow for expansion and balancing their books. While Western Midstream may carry more risk due to its focus, Energy Transfer and Enterprise Products Partners offer stability and diversified cash flow.
Bill Gross' decision to sell Enterprise Products Partners and opt for higher-yielding MLPs like Western Midstream, Energy Transfer, and MPLX showcases an alternative income strategy for investors seeking passive income with potential growth.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.